DCM Data Systems: Forging ahead in times of rapid change

Case B describes the unprecedented challenges faced by CO-RO in 2020. The implementation of the sugar tax in its largest Middle Eastern market led to a near 50% volume drop in CO-RO’s sales, and Covid-19 lockdowns impacted the Asia-Pacific (APAC) region in particular. These events led to a dramatic drop in net sales and gross profit, forcing CO-RO to re-evaluate its growth strategy and implement cost-saving measures. By 2022, CO-RO faced further challenges with global supply chain disruptions and inflation due to the war in Ukraine. This required strategic decisions to stabilize and ensure future growth amid ongoing external pressures.

The CO-RO Group is a manufacturer of fruit-based still drinks, concentrates and ambient ice (home-freeze popsicles) headquartered in Denmark. Although production takes place in Denmark, most of its products are sold internationally, with the company relying on long-term local partners to convert and market the finished products. Historically, the company focused on markets in which fruit-based drinks were rare, which led to steady growth in line with GDP and population increases; 70% of sales and 80% of profits came from the Middle East. Set between 2015 and 2019, Case A describes the company’s “Shape for Growth” strategy, which aimed to reduce over-reliance on key markets and resulted in new market entries and over 150 new products. This strategy also mitigated the effects of the 2014-2016 oil price crisis. However, in 2019, Saudi Arabia’s announcement of a 50% sugar tax on sweetened beverages threatened to significantly reduce market volumes.

The case explores TBC Bank Group’s remarkable journey from a small Georgian bank to a regional leader in digital financial services across Central Asia. Founded in 1992 with just US$500 in initial capital, TBC evolved into Georgia’s largest financial institution and pioneered into digital banking. The case highlights TBC’s strategic expansion into Uzbekistan, where it rapidly built a leading digital banking ecosystem. Students will analyze TBC’s international growth approach as it transformed customer experience, leveraged technology and built a sustainable competitive advantage through product diversification, strong organizational culture and operational agility. The case explores international market entry, digital transformation and aligning strategies with local market needs, highlighting how TBC’s focus on innovation drives its regional expansion.

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The China Resources Beer (CR Beer) case study is a compelling narrative of the world’s largest beer producer by volume under the leadership of CEO Hou Xiaohai. In 2016 CR Beer embarked on a pivotal transformation journey. This case study offers critical insights that particularly resonate with Chinese corporations navigating similar challenges in an era marking the end of China’s rapid economic growth. Faced with industry saturation, changing consumer behaviors, the rise of digital technology and the imperative shift from expansive to high-quality growth, CR Beer’s story mirrors the predicament in which many Chinese companies find themselves today. The case delves into CR Beer’s strategic overhaul, how it optimized its vast 60,000-employee structure, streamlined operations and embraced digital transformation to remain competitive. CR Beer’s transformation was characterized by tackling “three mountains” – operational inefficiency due to numerous small factories with high costs and low-capacity utilization, weak brand presence in the high-end beer market and an underutilized and mismatched workforce. The study also highlights the company’s innovative approach to rebranding for younger consumers, integrating consumer insights into product development and exploring new business models. It underscores the importance of internal cultural shifts to support these external changes and the role of leadership in guiding transformation. CR Beer’s journey from traditional efficiency to future-readiness offers valuable lessons in managing large-scale organizational change, strategic management and business innovation. It provides essential insights for understanding the complexities of transformation in a rapidly evolving industry, making it a crucial read for those interested in organizational change, particularly in the context of the Chinese market and its unique challenges and opportunities.